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IRS Publishes New Pension Plan Limitations for 2016

The Internal Revenue Service (IRS) announced cost of living adjustments (COLAs) affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2016.

In general, the pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not met the statutory thresholds that trigger their adjustment. However, other limitations will change because the increase in the index did met the statutory thresholds.